The budget continues the state's focus on economic growth
through a series of initiatives to create jobs and grow the economy, including
new tax cuts for small businesses, a new $350 tax credit for every middle class
family, major education investments and reforms, and an increase in the minimum
wage to $9 per hour.

With this agreement, the budget is on track to pass days
before the April 1 deadline, with the potential to be the earliest state budget
since 1976, and the first time New York has had three consecutive, on-time
budgets since 1984.

"This budget agreement puts New York on track to have
the third consecutive on-time, balanced, budget that holds increases in
spending under 2 percent, while investing in our economy to create jobs and
cutting taxes for middle class families and small businesses. This budget
symbolizes the tremendous progress that has been made in Albany and
demonstrates that the new New York
government is once again working for the people of this state," Cuomo
said. "Two years ago our state was facing significant challenges, with
constant spending and tax increases chasing businesses and people from our
state, and scandals making our government a joke of late night television.
Today, New York state is creating hundreds of thousands of private sector jobs,
opening the doors to new small businesses, cutting taxes for middle class
families to their lowest rates in 60 years, and making education investments
and reforms like never before. While there is still more work to do, today's
agreement shows that New York is on the move and is rising once again."

Skelos said, "I am pleased that we have reached
agreement on a responsible budget that includes the longtime Senate Republican
priorities to create new jobs and cut taxes for hardworking, middle-class
families. As part of this budget, we will provide a $350 family tax relief check
to families with children, offer incentives to help small businesses create new
jobs, and eliminate the energy tax surcharge over the next three years, all
initiatives highlighted by the Senate Republican conference throughout the
budget process. In the coming days, we will complete passage of the earliest
state budget in more than 30 years, our third consecutive early budget. I thank
the governor for his leadership, and commend our Senate finance committee Chair
Sen. John DeFrancisco, my coalition Co-Leader Sen. Jeff Klein, the Assembly
leadership, and all of my colleagues for their hard work."

Klein, who is also the Independent Democratic Conference leader,
said, "This is the most middle class-friendly budget in a generation. When
we formed the bipartisan coalition last December, we promised low-wage workers
that we would pass a major increase to the minimum wage. Today, we're
delivering on that promise and raising the minimum wage even higher than anyone
thought possible just three short months ago. Today's budget agreement is a
huge step forward for families across New York. We're not only giving minimum
wage workers the raise they deserve—we're putting real dollars back into the
pockets of families who really need it. For the past five years, we have been
asking middle class families to do more with less. Today, we're finally giving
them some relief by delivering a $350 check to every single one of those
families. Two years ago, we cut middle class taxes to their lowest level in 60
years. Today, I'm proud to announce that these same low tax rates on the middle
class are here to stay. I'm also pleased to announce that, with today's
agreement, the IDC is following through on its commitment to help returning
veterans find rewarding work when they come home. By providing a tax credit for
businesses that hire one of our state's heroes, I know we will bring down the
unacceptably high unemployment rate among New York veterans."

Silver said, "I am pleased that the governor and the
Legislature have reached agreement on a budget that addresses the Assembly
Majority's top priority of raising the minimum wage, ensures the care and
wellbeing of our vulnerable populations, stimulates job creation, and
safeguards a sound education for our children. I commend the governor and my
colleagues in the Assembly and Senate for their hard work and commitment to an
early budget agreement."

A Balanced, On-time Budget that Invests in Creating Jobs and
Cuts Taxes: The budget
closes a $1.3 billion gap with no new taxes or fees. New York state has not had
three consecutive on-time or early budgets since 1984, and has not had a budget
on track to pass this far before the April 1 deadline since 1976.

Cutting Taxes for Middle Class Families: Recognizing that New York's
taxpayers have been overtaxed for too long, the budget includes $1.125 billion
in new tax cuts to middle class families over three years. Families with
incomes between $40,000 and $300,000 will be eligible to receive a new child
tax credit of $350 per year for three years, beginning in 2014.

Tax Cuts for Small Businesses: To provide tax relief to New York's
job creators, the budget includes nearly $800 million in tax relief for New
York businesses over three years. With this tax relief, the budget recognizes
that cutting taxes sends a positive sign to the private sector that New York is
pro-business and helps reverse New York's longstanding reputation as the tax
capital of the nation.

Hiring Tax Credits: To help New York's returning soldiers and young people find
work, the budget includes a permanent tax credit for the hiring of veterans,
and $181 million in tax credits over three years for businesses that hire
youth.

Reducing Costs and Red Tape for Businesses: To reduce the crushing burden of
unemployment insurance and workers' compensation, the budget modernizes and
simplifies both systems to provide employers $1.3 billion in savings without
affecting workers' benefits.

Investing in the Economy of Tomorrow: The budget provides the initial
funding to launch the "Innovation Hot
Spots" program that will create or designate 10 high-tech innovation
incubators at locations affiliated with higher education institutions to
encourage private-sector growth; a $50 million "Innovation Venture Capital Fund" that will provide critical seed
and early-stage funding to incentivize new business formation and growth in New
York state and facilitate the transition from ideas and research to marketable
products.

Workforce Training for Job Openings: Cuomo said New York's workforce
training is from a different era and a generic job-training program does not
fit today's economy. The budget capitalizes on the opportunity of an estimated
210,000 unfilled jobs in the state by including $5 million for the "Next Generation Job Linkage Program"that
works with employers to identify the job; define the skill; and provide the
training for it.

Protecting the Environment and Creating Green Jobs: The budget increases support for
the Environmental Protection Fund and the "Cleaner, Greener Communities"
program, to launch new projects across the state that both create green jobs
and protect New York's natural environment.

Building on the Success of the Regional Councils: The budget includes a third round
of the Regional Economic Development Councils, including $150 million in new
funding and $70 million in tax credits.

Promoting Upstate Tourism and Agriculture through 'Market NY': To bolster tourism and better
market New York-made foods and produce, the budget launches the "Market NY" initiative.

SUNY and CUNY Campuses Driving Private Sector Job Creation: The budget includes a third round
of the SUNY 2020 program and launches the CUNY 2020 program to provide
competitive grants for projects that connect economic development and academic
excellence. ($110 million)

Education Investments and Reforms

Increasing Funding for Education: The budget reflects New York state's
focus on creating a world-class education system that will fully prepare all of
New York's students to compete in the 21st century economy. To
accomplish the goal, the budget includes an increase of nearly $1 billion in
education aid.

Pre-kindergarten Program Expansion: Recognizing that quality early
education is critical for long-term success and that children who attend
full-day pre-k often outperform their peers, the budget provides additional
investments in pre-kindergarten with an emphasis on high quality, full-day
pre-k. Funding is targeted toward higher need students in lower wealth school
districts via a competitive process. ($25 million)

State Increases Tied to Teacher Evaluations: To maintain New York state's
leadership in holding teachers accountable for student achievement, the budget
continues to tie increases in funding for education to the implementation of a
teacher evaluation system. No teacher evaluations means no state increase.

Extended Learning Time: Cuomo said our existing education calendar is still
based on an agrarian system and the U.S. lags behind other nations in terms of
how much time students spend in the classroom. In order to provide increased
learning opportunities, the budget supports high-quality extended school day or
extended school year programs, with academically enriched programming. Schools
that apply to participate in the program must agree to expand learning time by
25 percent. The state will cover the full cost of expanding learning time for
students. ($20 million)

Community Schools: Recognizing that a school is not just a "school"
in distressed communities and that the demands of schools in wealthier
districts are different than demands in lowest wealth districts, the budget
supports an innovative program designed to transform schools into community
hubs that integrate social, health and other services, as well as after-school
programming to support students and their families. ($15 million)

Reward High-Performing Teachers: To improve results and incentive
high-performance, the budget implements a program that will offer $15,000 in
annual stipends for four years to the most effective teachers beginning with
math and science teachers. ($11 million)

Early College High School Programs: To improve college access and
success, the budget provides new state funding to expand early college high
school programs. ($4 million)

Bar Exam for Teachers: To ensure the best and brightest are teaching our
children, the State Education Department will increase the standards for
teacher certification to require passage of a "bar exam," in addition
to longer, more intensive and high-quality student-teaching experience in a
school setting.

Other Budget and Legislative
Actions:

Raises the Minimum Wage: Recognizing that New York's minimum wage is
unlivable and that 19 other states have higher minimum wages than New York, the
budget raises the minimum wage from $7.25/hour to $9/hour over three years,
beginning with $8 by the end of 2013, $8.75 by the end of 2014, and $9 by the
end of 2015.

Lowering and Phasing Out the 18-a Utility Assessment: The temporary utility assessment on
electric, gas, water and steam utilities would be phased out over three years
beginning in 2014-15.

Pension Stabilization Program: The budget includes a pension
stabilization program that has been agreed to by the state comptroller's office
for local governments to access short-term relief as the savings of Tier VI
begin to take effect.

Public Service Commission Reform: The budget includes a number of
reforms that were recommended by the Moreland Commission to give the public
service commission greater authority over the state's utilities.